Luxury counselor Sage Brennan on China’s luxury spending

Chinese consumers have been the largest buyers of luxury products in the world over the last decade. According to Reuters, Chinese luxury spending accounts for as much as 45 percent of the global market. So can luxury brands afford a devalued renminbi. China’s triple yuan devaluation is expected to take a big toll on the global luxury sector, which has already been hurt by Beijing’s tough anti-corruption drive. Firstly with the yuan devaluation, goods sold in China converted into dollars or euros will now account for less and that will hurt earnings. According to Deutsche Bank some of the companies that rely most on China for revenue are Swatch which gets 20 % of revenue from mainland china. China makes up 14 % of global sales for Ferragamo, Burberry and Gucci and around 11% for Hermes.